26 February 2025

Communications Minister Solly Malatsi has underlined the importance of making smartphones and other smart devices affordable in providing access to digital tools that will enable all South Africans to participate in and benefit from the digital economy.

Speaking at a workshop where the government partnered with the World Bank and GSMA to accelerate access to affordable smart devices for all South Africans, Malatsi stressed the importance of driving inclusive digital transformation to close the gap between the rich and the poor. The intense one-day event explored concrete strategies to lower costs, expand availability, and bridge the digital divide. The digital transformation workshop brought together leaders from the telecommunications industry, financial institutions, and key stakeholders to develop practical, scalable solutions that will drive widespread access to smart devices.

“It is estimated that the digital economy contributes about 19% of South Africa’s GDP, yet millions are excluded – and not because broadband is not available,” said Malatsi.

GSMA senior policy manager for Sub-Saharan Africa, Nomonde Gongxeka-Seopa blamed the ad valorem taxes levied on imported smartphones as one of the main factors driving the high costs of devices not only in South Africa but across the continent. GSMA has in the past flagged that from the customer's perspective, the affordability of devices is a challenge for many, particularly those in low-income households. It believes that the cost of these devices is increased by the ad-valorem taxes levied on them when they are imported and wants smartphones reduced from the present average of $50 to $20 per handset if the poor majority are to afford them.

Malatsi concurred and announced plans to meet the national treasury to discuss the removal of ad valorem taxes on smartphones: “smartphones are no longer a luxury good; they have become a necessity for participation in the modern economy.”